I have a client who makes under $70k per year. Married with 2 kids.

He has been putting $100/m into an IUL for the past 9 years.

Today, he has over $20k in Cash Value. (that is well over a 10% return on premiums)


They dont have to be rich. But they do need a desire to save money... and have the will power to do so.

At $100/mo is there a risk of lapse as they age? I guess it’s hard to say since you didn’t disclose the face amount. My $100 illustrations on adults always look shaky toward retirement.
 
At $100/mo is there a risk of lapse as they age? I guess it’s hard to say since you didn’t disclose the face amount. My $100 illustrations on adults always look shaky toward retirement.

I didnt disclose the face because I have no clue what it started at. Minimum Non-Mec face for their age at the time.

IUL should be (generally speaking anyways) Minimum Non-Mec Face.

If your at Min Non-Mec face, and design the rest of the policy correctly, then it doesnt matter what your monthly premium is. The policy will be stable in retirement.

If your illustrations are crashing in retirement, your issue is:
1. wrong policy design
2. crappy product
3. possibly both
 
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I didnt disclose the face because I have no clue what it started at. Minimum Non-Mec face for their age at the time.

IUL should be (generally speaking anyways) Minimum Non-Mec Face.

If your at Min Non-Mec face, and design the rest of the policy correctly, then it doesnt matter what your monthly premium is. The policy will be stable in retirement.

If your illustrations are crashing in retirement, your issue is:
1. wrong policy design
2. crappy product
3. possibly both

great post, spot on
 
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